Pacific Islands Regional Oceanscape Program Forum Fisheries Agency Project P153429 – TF18604 and Project P131655 – D0230 Special purpose financial report for the year ended 30 June 2020 PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM FORUM FISHERIES AGENCY PROJECT P153429 - TF18604 AND PROJECT P131655 - D0230 SPECIAL PURPOSE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2020 Contents Table of contents…………………………………………………………………………………………………… 1 Statement by project management………………………………………………………………………………… 2 Independent audit report…………………………………...………...…………………………………………… 3-4 Statement of cash receipts and disbursement…………………………...…..…………………………………… 5 Statement of project cash………...…………………………...…..……………………………………………… 6-7 Notes to the special purpose financial report....…...….……...………………………………………………… 8 1 PACIFIC ISLANDS R£GIO Al OCEANSCAPE PROGRAM FORU FISHERIES AGENCY -. ) E C P OJ ECT P131655 - 00230 STATEMENT BY PROJECT MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2020 We certify that, to the best of our knowledge and belief: (a) the accompanying statement of cash receipts and disbursement of the project is drawn up so as to give a true and fair view of the results of the project funded by The World Bank for the year ended 30 June 2020; (b) the accompanying statement of project cash of the project is drawn up so as to give a true and fair view of the results of the project funded by The World Bank for the year ended 30 June 2020; and (c) at the date of this statement there are reasonable grounds to believe that the grant was fully and solely expended on the project for which approval had been given by The Wor1d Bank. Signed for and on behalf of the management. Dated Al day of De.c.~~if 2020 .32. . . . . . . . . .... ... . . . . . . . . Dr Manumatavai Tupou Roosen Director General 2 Independent Auditors’ Report To the Members of the Pacific Islands Regional Oceanscape Program Report on the Audit of the Special Purpose Financial Report Opinion We have audited the cash receipts and disbursements of Pacific Islands Regional Oceanscape Program (“PROP”) project implemented by The World Bank which comprises the statement of cash receipts and disbursement, statement of project cash for the year ended 30 June 2020 and a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying special purpose financial report of PROP for the year ended 30 June 2020 is prepared, in accordance with cash receipts and disbursement basis of accounting described in Note 2 to the special purpose financial report. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Special purpose financial report section of our report. We are independent of the Program in accordance with the ethical requirements that are relevant to our audit of the special purpose financial report and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Management is responsible for the other information. The other information comprises the Statement by the Project Management, but does not include the special purpose financial report and our auditors’ report thereon. Our opinion on the special purpose financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the special purpose financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the special purpose financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditors’ report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Emphasis of Matter - Basis of Accounting and Restriction on Use and Distribution We draw attention to Note 2 in the special purpose financial report, which describes the basis of accounting. The special purpose financial report is prepared to provide information to the members of the Pacific Islands Regional Oceanscape Program. As a result, the special purpose financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Responsibilities of Management for the Special purpose financial report Management is responsible for the preparation and fair presentation of the special purpose financial report in accordance with the cash receipts and disbursement basis of accounting described in Note 2, for determining the acceptability of the basis of accounting, and for such internal control as management describes is necessary to enable the preparation of the special purpose financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial statement, management is responsible for assessing the Program’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Program or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Program’s financial reporting process. KPMG, a Fiji partnership, is part of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Document classification: KPMG Confidential 3 PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRA FORU ASHERIES AGENCY 0 ~o - r r 55 • 00230 STATEMENT OF CASH RECEIPTS ANO DISBURSEMENT FOR THE YEAR ENDED 30 JUNE 2020 30.Jun-20 30.Jun-19 Cumulative $ $ $ Income International development association r10A•) 1,024,865 459,902 3,100,144 Global environment facility ("GEF") 925,374 189,508 1,551,653 Total income 1,950,239 649,410 4,651,797 Expenses Sustainable management of ocean fisheries (333,019) (290,507) (1,271,438) Sustainable management of coastal fisheries (150,000) (350,015) Sustainable financing of the conservation of critical fishery habitat· (1,355, 155) (229,918) (1, 736,669) Regional coordination (211,082) (118,237) (975,709) Total expenditure (2,049,256) (638,662) (4,333,831) Surplus for the period (99,017) 10,748 317,966 Signed for and on behalf of the management. 82 ........ . Dr Manumataval Tupou Roosen Director General 5 PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM FORUM FISHERIES AGENCY PROJECT P153429 - TF18604 AND PROJECT P131655 - D0230 STATEMENT OF PROJECT CASH - INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 30 JUNE 2020 30-Jun-20 30-Jun-19 Cumulative $ $ $ Balance at the beginning of the year 353,913 321,075 1,175,650 Amounts received during the year 1,024,865 459,902 3,100,144 Payments made during the year (1,064,634) (427,064) (2,786,000) Balance at the end of the year 314,144 353,913 1,489,794 6 PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM FORUM FISHERIES AGENCY PROJECT P153429 - TF18604 AND PROJECT P131655 - D0230 STATEMENT OF PROJECT CASH - GLOBAL ENVIRONMENT FACILITY FOR THE YEAR ENDED 30 JUNE 2020 30-Jun-20 30-Jun-19 Cumulative $ $ $ Balance at the beginning of the year 63,071 85,160 348,225 Amounts received during the year 925,374 189,508 1,551,653 Payments made during the year (984,622) (211,597) (1,547,830) Balance at the end of the year 3,822 63,071 352,048 7 PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM FORUM FISHERIES AGENCY PROJECT P153429 - TF18604 AND PROJECT P131655 - D0230 NOTES TO THE SPECIAL PURPOSE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2020 1. GENERAL INFORMATION Pacific Island Forum Fisheries Agency received financing from the World Bank for the Pacific Islands Regional Oceanscape Program ("PROP") project. The PROP development objective is to strengthen the shared management of selected Pacific Island oceanic and coastal fisheries, and the critical habitats upon which they depend. This will provide the basis for sustainable and increased economic benefits to the participating Pacific Island countries from these resources. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Set out hereunder are the significant accounting policies adopted by the project in the preparation of the special purpose financial report of PROP project for the year ended 30 June 2020. a) Basis of preparation of the Special Purpose Financial Report The Special Purpose Financial Report has been prepared in accordance with the historical cost accounting and do not take into account changing money values or current valuations of non current assets unless otherwise stated. Income and expenditure have been brought to account on a cash basis only. All amounts are stated in US currency. b) Income Grant income is recorded upon receipt of income. c) Expenditure Expenses are recorded when paid during the period of the project. d) Comparative figures Comparative figures have been amended where necessary, for changes in presentation in the current year. 8